A Philadelphia real estate investor needing a place to live purchased a house in Brewerytown at the end of 2016 for $145,000. Since he did very little in terms of renovation, he was quite surprised when the house appraised for $200,000 less than one year later. This is just one example of an incredible upward trend. Over the last few years, Philly neighbourhoods like Brewerytown, Fishtown, Kensington, Port Richmond, Moyamensing, Point Breeze and Graduate Hospital have seen a lot of development and fast improvement. This city is getting to be a hot place for real estate investors who are all trying to determine the best place to buy investment property in Philadelphia. Here’s just four neighborhoods that investors have on their radar in 2019.
Rents may be a little lower in Grays Ferry but there’s a lot of houses being rented out here. In 2016 it was named the most affordable neighborhood in Philly because of lower property prices but that’s good not only for home ownership but also for tenancy. Fix up a home in this area and make it more attractive than the competition and you should be able to rent it out and make a good return on your investment.
There’s been a lot of buzz over investing in real estate in Point Breeze since the median house value climbed a whopping 26.8% in 2016. First-time home buyers have been targeting this area, finding that it’s becoming trendier and they like that it’s walking distance from Center City. This neighborhood has good property options for fix-and-flip as well as buy-and-hold investors.
Lower Moyamensing is a vibrant area with many great ethnic restaurants. Houses in LoMo are what realtor Jeanne Whipple calls “grandmom specials” which she defines as “well-maintained homes that lack the most current decor.” Often investors can buy these homes and get away with mostly cosmetic updates and maybe just one house system upgrade, like the HVAC or electrical system. Investors are still finding bargains here for under $200,000.
Leaving south Philly, let’s head up to the northwest where Roxborough continues to be an attractive place to invest. It was ranked the 7th best neighborhood to buy a house in the Philadelphia area in 2017. Rent is relatively cheap here, but if you can find a fixer upper in this neighborhood you’ll be able to get a pretty high return on your investment.
So what’s the best place to buy investment property in Philadelphia?
While a real estate investor with the right strategy could do well in any of the neighborhoods we just quickly reviewed, the best place for you to buy investment property in Philadelphia depends on your strengths and goals as a real estate investor. Are you wanting to do a fix-and-flip or a buy-and-hold? Shorter term student rentals or longer term family rentals? Making cosmetic upgrades or a complete renovation? What’s your capital budget? If you’re borrowing money to finance your next project, talking to a hard money lender experienced in real estate investments in this city could give you significant insight and help you decide on the best place to buy investment property in Philadelphia.